Fintech Startups Grabbed a Larger Share of US Personal Loans

Personal loans

According to TransUnion data, US personal loans outstanding grew from ~$71.9 billion a decade ago to ~$120 billion as of March. Personal loans, which aren’t collateralized by an asset, have been availed by ~17 million Americans. Financial technology startup shares like Lending Club, Prosper, and Avant increased from 0.90% in 2010 to 36.2% in 2017. At the same time, bank shares (VFH) (XLF) (IYF) declined from 34.1% to 26.4%.

Fintech Startups Grabbed a Larger Share of US Personal Loans

Higher credit card use propelled Visa’s earnings

The total spending on Visa’s (V) network rose 11% to $2.1 trillion in the second quarter—slightly better than analysts’ estimates of $2.09 trillion compiled by Bloomberg. The revenues have risen 15% YoY (year-over-year) to $5.2 billion and exceeded the estimates of $5.09 billion. Visa reported an adjusted EPS of $1.20 per share—an improvement of 39% YoY.

Fintech Startups Grabbed a Larger Share of US Personal Loans

Mastercard reported healthy earnings growth

Mastercard (MA) reported earnings of $1.6 billion or $1.50 per share in the second quarter—compared to $1.2 billion or $1.10 per share during the same period last year. The company’s revenues for the quarter rose 19.4% to $3.7 billion from $3.1 billion last year.